New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-07-08
LEGAL UNCERTAINTY.

q
decisions of the Interstate Commission and OF
Judge Deadly have not had more favorable
effect ON the prices of stocks. Certainly these
decisions, If fipally sustained, must In the
end prove exceedingly beneficial to rallroads'
This not merely because cloud OF msrepie
sentation and distrust would thus be removed ;
not merely because railroads would 10 lett
free. as they were before, to develop their
traffic Mt competing points and thus to rival
each other to the utmost In serving the public.
A broader reason lies behind. The industry
and trade of a great many towns have been
threatened by the new act. Its operation has
closed many establishments already. Doubt
less it would when fully enforced according 10
the intent of its frameH have closed many
others II would have transferred vast
amount of business and production to new To-
calities, and the change would have been costly
and disastrous. Also, it would have prevented
a vast amount of trade and production. Inc
curtailmcnt of business and OF productive IN
dustry necessarily means in the end less
profits for railroads.
Hence, il these decisions are sustained, they
will unquestionably result in great benefits 70
Transporting companies in the long nun. Bu'
during the last three months false or short
sighted notions of the act have been iDdustrl-
olsly encouraged 1t has been said that 1t
would help railroads TO charge more Tor tho
same services They wanted to charge what
ever they could, 1t was argued, and had been
prevented only by composition, which the new
act would compel them in meas ure TO
abandon. So in the end they would get larger
earnings for the same services. The reasoning
was sound as to the temporary effect OF the
act The roads have made moro money Tor
less work since the law passed than at any
time before. They would have continued This
process as long as they could. But the rea-
soning is short-sighted and unsound, because
il ignors the fact that railroads cannot pros
pcr In the long run unless the country pros
pcrs. The prosperity OF the country must have
been seriously impaired by the interruption OF
channels of commerce upon which all It's indus
tries for the last thirty years have been do
veoped.
Because the Street saw only few weeks
into the future, ard refused to see rurther'
because larger earnings seemed to Wsu1y hishef
nrices and the ultimate decline Of prosperity
and business was ignored, prices rose rapidly
until about Nav II. But because the shrewd-
est railroad managers and stockholders looked
further into the future, they seized the oppor-
tunity to unload part Of their securities
Heavy selling followed, and slow decline for
four weeks, and then serious break Hons
which the recovery has not been rapid.
Why, then, do not shrewd stockholders ana
managers make haste to buy again. in view
Of the decisions mentioned? II the great and
only lasting danger is removed by just IN
ternretation of the act, why is there hesita-
ton =? One of the worst features Of the law
supplies the only answer. The act involves
almost endless litigation before its meaning
can be entirely settled. The litigation may
be begun by the Commission, or by any dis
satisfied individuals. The decisions OF s )ne
corrts are sure to be in favor of local pref
udce. and Of other courts in favor OF tho
companies. long time must elapse before
the Supreme Court can pass upon oil vital
points of the law During that tiue the rail-
roads are exposed to vexatious and costly litl-
CATION, TO orders from Commissioners, Ma
tional and State and to the hostile prejudice
of people who think they are violating and
defying the law. 1t Is question whether the
railroads may not lose during this time OF IN
certainty more than they can gain. But for
this uncertainty attending the prolonged hn-
cation which the law involves, it IL probable
that an upward reaction In prices would erc
this have begun.